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Minimalism is often misunderstood as a radical lifestyle, but it is more about intentionality and mindfulness in managing possessions. The speaker emphasizes that minimalists can still own many items, as long as they avoid excess and focus on what adds value to their lives. This approach entails questioning the necessity of possessions regularly and understanding that most items can be replaced if needed. Ultimately, minimalism serves as a tool for enhancing life's important aspects, enabling individuals to prioritize health, relationships, and personal growth.